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Explain two reasons why it is important to have a working knowledge of DFDs and flowcharting.
Minimum Required Rate
The lowest rate of return considered acceptable by investors for investing in a financial instrument, based on risk and alternative opportunities.
Average Operating Assets
An average value of the assets used in the regular operations of a business over a specific period.
Net Operating Income
A measure of a company's profitability, calculated as the difference between its total revenue and operating expenses, excluding taxes and interest.
Return On Investment
A financial ratio used to calculate the profitability of an investment, comparing the gain from an investment relative to its cost.
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